EBRD to provide Lviv Bank with EUR-40-mln-equivalent-hryvnia loan, guarantees for EUR 31.5 mln
The European Bank for Reconstruction and Development (EBRD) will provide Lviv Bank with an unsecured loan in hryvnia equivalent to EUR 40 million and guarantees for EUR 31.5 million to cover the credit risk on new loans of the Ukrainian bank for a total amount equivalent to EUR 45 million.
As noted on the EBRD website, the Board of Directors approved the relevant projects at a meeting on October 22 of this year.
According to the published materials, the loan will be provided in four equal installments of EUR 10 million each, one of which is currently reserved. The loan consists of two components: at least 75% will come from the EBRD Resilience and Livelihoods Framework, and up to 25% will come from the EU4Business-EBRD Credit Line. These funds will finance long-term capital investments of MSMEs.
Financing under the Resilience and Livelihoods Framework will lend to private MSMEs in Ukraine, including those that have relocated to western Ukraine due to the ongoing war.
Unlike most similar projects with larger banks, the guarantee project will cover 70% of the risk instead of the usual 50%. The mechanism will include two sub-limits with a covered portfolio: EUR 36 million under the Resilience and Livelihoods Framework and EUR 9 million under the EU4Business-EBRD Credit Line.
The EBRD indicates that Bank Lviv is a regional bank focused on MSMEs operating in western Ukraine, with total assets of EUR 333 million (0.5% of the market, 23rd place among 60 banks) and a loan portfolio (mainly MSMEs) of approximately EUR 212 million as of the end of Q2 2025 (1.2% of the market). Bank Lviv has its head office in Lviv and 20 branches.